Answers

1. Which of the below does a credit score most prominently indicate?
   1. The likelihood you will not repay a loan ✓
   2. The amount of debt you are in
   3. Your attitude towards having credit
   4. Your level of wealth relative to your credit
   5. Understanding of how credit works
2. Which of the following are allowed to use credit scores to determine your eligibility to buy their service as well as the price they can charge?
   1. Landlord
   2. Phone + Electric Utility
   3. Homeowners insurance
   4. Mortgage lender
   5. Credit card issuer
   6. All of the above ✓
3. The average loan amount for a used car purchase is $20,446. How much more would a borrower have to pay in interest if their credit score is low?
   1. The same, it is illegal to charge more based on credit
   2. Less than $1,000
   3. $1,000 to $5,000
   4. $5,000 or more ✓
4. Which of the below is *not* a factor that can be used in calculating a credit score?
   1. How many payments you have missed
   2. Whether or not you have filed for personal bankruptcy
   3. Marital status ✓
   4. Your credit card balances relative to the amount of debt you have
5. Which of the following scores is considered to be a “good” credit score?
   1. 450
   2. 550
   3. 600
   4. 700 ✓
6. In which of the following situations must a lender that uses a credit score as part of their approval or rejection decision inform the borrower that their credit score influences the terms of their loan?
   1. Whenever the borrower isn't eligible for the lowest available rate
   2. After a home mortgage application
   3. When a loan application is rejected
   4. All of the above ✓

   In accordance with federal law, mortgage and consumer lenders must disclose the generic scores used when evaluating applications if the lowest rate or best terms cannot be offered due to a credit score.

7. Which of the following will help you raise a low score (or maintain a high one)?
   1. Keeping your balance under 25% of your total credit limit
   2. Consistent on-time payments
   3. Avoiding opening multiple credit card accounts simultaneously
   4. All of the above ✓
   5. None of these affect your score
8. All of the below are credit bureaus except:
   1. Experian
   2. Wells Fargo ✓
   3. TransUnion
   4. Equifax
9. True or false: Multiple credit inquiries made within a one-week window can lower your score
   1. True
   2. False ✓

   Multiple inquiries during a short period, for example when shopping around for an auto loan, are treated as a single inquiry by the credit bureaus and shouldn't lower your score. Beyond 1-2 weeks, frequent credit inquiries may negatively affect your score, though not by much when compared with missing payments.

10. How important is it to check the accuracy of your credit reports annually at the three main credit bureaus?
    1. Very important ✓
    2. Somewhat important
    3. Not at all important